A firm is worth $1,500, has a 35% tax rate, total debt of $600, an unlevered return of 15%, and a cost of debt of 6%, what is the cost of equity? ered of Select one: a. 19.14% b. 20.20% 18.41% d. 19.39% e. 18.90% tion 2 The pure play approach: ered Select one: o a. Cannot be used if the firm has preferred stock outstanding. O b. Is most useful when each division makes a multitude of different products. o c ls easier to implement than the subjective approach. o d. Should be used only if a firm has more than three divisions. e. Can be used to find the cost of capital for a division